Luxury Goods Are Struggling In China. European Stores Are Crowded With Chinese People.

Luxury buyers in China have already retrenchment.

After years of rapid expansion in mainland China, shops like museums have become the burden of luxury companies.

There are few customers, and the shop full of fancy goods may be out of season.

To a certain extent, it has been influenced by the Chinese government's anti-corruption struggle in recent years.

Long before China's stock market plummeted, the anti-corruption movement contained the spirit of giving gifts and showing off wealth.

"You have to prepare for the worst, but the worst is worse than what you are prepared to deal with," said Yao Jiacheng, a retail consultant at smithy business consulting in Shanghai.

This is a period of resignation.

We must reflect on what we have been doing all along. "

Reported that LVMH, Kai Yun, Prada, Boboli and other high-end fashion brand group declined to comment.

The booming business of luxury brands in Europe helped to alleviate the blow they suffered.

High import tariffs make many luxuries.

Year-on-year growth of more than 2 times, the total consumption accounts for more than 1/4 of the total, ranking first in the world.

According to US media, consultants in the industry say that luxury brands are struggling in China and are quietly discounting to clear excess inventory.

But China's economic slowdown and stock market decline are not yet at least not yet cutting Chinese tourists' enthusiasm for shopping in Europe.

In Fukuoka, the canal city supermarket is also full of Chinese shoppers.

Zhong Jing, 26, stood outside the flagship store of Paris's old Buddha's department store and was anxiously waiting for the family to go shopping in Qingdao, China's coastal city, according to the 14 daily report of the Wall Street journal in September.

Reports say the streets outside the shop are crowded with tourists from China's bus brigade.

Louis Weedon and Chanel counters are also crowded with Chinese speaking customers.

The security guard has already surrounded the counter with rope and asked other Chinese customers to wait outside.

Chung Chung, a French student, said, "my family is here for shopping.

Things are much cheaper here.

The renminbi has depreciated a little, but the purchasing power of the Chinese people is still strong. "

The total consumption volume of Chinese tourists in the first 6 months of this year increased by 75%, despite the depreciation of the renminbi and the stock market crash in August, but the consumption volume of Chinese tourists increased by 72% over the same period last year.

Reported that in the first 6 months of this year, the total consumption of Chinese tourists in Europe reached 981 euros per capita, an increase of 7% over the same period last year.

To a certain extent, this is due to the relaxation of the tourist visa system.

The French government now predicts that the number of Chinese tourists coming to France will exceed 2 million in 2015, an increase of about 1 million 500 thousand compared to 2014.

In the first half of this year, the number of Chinese tourists in Paris alone increased by 49%.

It is good news for LVMH group, which owns Gucci brand and the group of luxury brands such as Louis Weedon, but the future of Chinese tourists is still unknown, because depreciation of the RMB and economic fluctuation may weaken the overseas tourism and consumption ability of Chinese people.

The price of China is two times that of Europe.

Chinese consumers go to Europe not only to avoid tariffs, but also to benefit from devalued euros.

Brian Buch Wald, a retail consultant at the www.bomoda.com, estimates that 80% of the luxuries that Chinese buys is from mainland China, such as buying or overseas when traveling abroad.

Luxury goods sold in parallel markets.

He said consumers prefer retail shopping experience, and they believe that luxury goods purchased abroad are genuine.

Zhang Yuhan, a 29 year old housewife in Beijing, had just traveled to Spain with her tour group.

She bought a Gucci bag at 420 euros for a discount store outside Barcelona.

"No matter how bad the economy is, European luxury goods are still much cheaper than Beijing," she said.

At the same time,

The lack of a large discount network can help luxury brands clean up unsalable goods.

Fashion brands do not want to sell large discounts in their stores, because this will cause consumers to doubt the intrinsic value of their products - but this is starting to happen.

A consultant at Smiths business consultancy pointed out that some luxury brands earlier this year cleared up over half off of the season's inventory, which is larger than the usual quarter's thirty percent off.

Earlier this year, Gucci promoted half off in China, according to domestic media and analysts.

In March, Chanel also cut its price by 21%.

The company said the move was aimed at narrowing the market spreads and combating the purchase of profits in China after buying handbags in Europe.

By the end of July, Prada also lowered its price in China by 10%, according to Chinese domestic media.

Reported that some brands are

A private sale will be held or a flash sale website will be sold.

After the financial crisis in 2008, flash buying became a popular channel for some retailers to clean up excess inventory.

At present, LVMH's Fendi, KENZO and other small brands are launching their products on the Chinese Flash purchase website, with a discount of up to half off.

On the popular mei.com website, the price of KENZO's famous leather bag is 5110 yuan, almost half of its original price.

According to the report, Torsten Stoker, a consultant to Hongkong based management company, said: "three years ago, how many stores in China were not enough.

The challenge now is how to keep the quantity of goods consistent with the number of customers.